Value context and insight. lkm@koreatimes.co.kr
Economic confidence hits 11-yr high on bullish stock market, extra budget anticipations
Bank of Korea (BOK) headquarters in Seoul / Courtesy of BOK
By Lee Kyung-min
The country’s economic confidence has surged to the highest level in 11 months, buoyed by expectations of a sustained rally in the benchmark KOSPI, coupled with the second extra budget of about 20 trillion won ($14.7 billion), central bank data showed Tuesday.
Further advancing the optimism are improved growth and equity market outlooks for Korea as assessed by many global investment banks and research bodies, amid significantly reduced political uncertainties.
According to the Bank of Korea, its News Sentiment Index came to 108.43, slightly down from 109.05 the previous day, which had been the highest since July last year.
It was a notable recovery from 77.08 on Dec. 10 last year, when the country was reeling from former President Yoon Suk Yeol’s short-lived martial law declaration.
The previous comparable figure of 77.02 was recorded in December 2022 in the midst of the nationwide truckers’ strike.
An above-100 reading means optimists outnumber pessimists, reflecting a more positive economic sentiment compared to the historical long-term average.
The central bank’s political uncertainty index also came to 1.0 as of Sunday, down from the previous peak of 12.8 on Dec. 14 last year, shortly after the martial law declaration. The index has since stabilized to the pre-martial law level of 0.5.